Revvity Inc. (RVTY) picked up a fresh bull Monday, when William Blair initiated coverage with an Outperform rating and made a slightly counterintuitive argument: artificial intelligence, often framed as a threat to software businesses, could actually be a net tailwind here.

Life Sciences Recovery Could Drive Estimates Higher

Analyst Matt Larew thinks the improving life sciences end markets simply aren't reflected in consensus estimates yet. That segment accounts for roughly 52% of Revvity's revenue, so it's not a rounding error. Pharma and biotech funding is also loosening up, which should support demand across the portfolio.

On the AI question, William Blair expects an incremental boost to Revvity's preclinical business, though the company's high-throughput screening, or HTS, business could see some pressure. The firm's checks also suggest the software business is more resilient than investors give it credit for.

Why? Because Revvity's real moat isn't code. It's proprietary data and customer workflows that are deeply embedded in how labs actually operate, which is a lot harder for a competitor to copy than a few lines of software.

The AI Narrative Could Flip From Risk To Tailwind

Valuation-wise, Revvity trades at 25.6 times William Blair's 2027 earnings-per-share estimate. That's above the stock's 10-year average multiple of 21.2 times, but still a slight discount to its peer group.

Larew noted that recent price action has already started pricing in expectations for stronger revenue growth and margin expansion. Even so, he sees more room to run as the AI story around Revvity's Signals software business shifts from perceived competitive risk to potential growth driver. His call: more than 20% upside over the next year, backed by positive earnings estimate revisions.

In other words, William Blair thinks Revvity is entering a beat-and-raise cycle as its end markets recover.

Recent Earnings

The recent numbers support that thesis. In August, Revvity reported second-quarter adjusted earnings of $1.41 per share, beating the consensus estimate of $1.22. Sales came in at $729.67 million, topping the $709.04 million estimate.

“Revvity delivered a strong second quarter, with results above our expectations and encouraging signs of increased demand across our customer base,” said Prahlad Singh, president and CEO of Revvity.

The company raised its fiscal 2026 adjusted earnings guidance to $5.30-$5.40 per share from $5.20-$5.30. The consensus estimate was $5.27 per share. It also lifted its 2026 sales guidance to $2.83 billion-$2.86 billion from $2.81 billion-$2.84 billion, while Wall Street expects revenue of $2.858 billion.

RVTY Price Action: Revvity shares were down 2.04% at $154.15 at the time of publication on Tuesday. The stock is approaching its 52-week high of $158.28, according to market data.